Is Social Security Disability Taxable?

Social Security Disability benefits help those who have suffered from an injury by providing funds to cover expenses while they attempt to recover, if possible. For those who may never recover, Social Security Disability benefits may be their only source of income. Because it is considered a source of income, however, Social Security Disability benefits are taxable.

Most Social Security beneficiaries will not be taxed because their income is not high enough. However, roughly one-third of those who receive benefits will have to pay some taxes on their benefits.

Generally, those who must pay taxes have other income outside of their social security benefits, likely from a spouse or other household income. These benefits are taxable regardless of whether you receive them before or after retirement, due to a personal disability, or as a result of a survivorship claim.

What Amount of my Social Security Disability Benefits is Taxable?

If you want to take a guess at how much of your disability benefits may be taxable, you can try to use this IRS Form. You could also do some simple calculations on your own.

$25,000 if you are single, head of household, a qualifying widow(er), or you are married but filing separately and lived apart from your spouse for the entire year

$32,000 if you are married filing jointly

$0 if you are married filing separately and lived with your spouse at any time during the year

2. Calculate your qualifying income: Divide your total Social Security benefits for the year in half. Then, add your other income to that number (including your spouse’s income).

3. Find your taxable Social Security benefits: If the number you found in Step 2 is higher than your base amount (Step 1), then up to 50 percent of your benefits are taxable.

4. Find any additional tax: If the number you found in Step 2 is higher than specific amounts, then up to 85 percent of your benefits may be taxable. These amounts vary depending on your filing status.

$34,000 if you are single, head of household, a qualifying widow(er), or you are married but filing separately and lived apart from your spouse for the entire year

$44,000 if you are married filing jointly

$0 if you are married filing separately but you and your spouse lived together at any point during the year